Lucky Fibres Set to Raise Funds from the Capital Market
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Lucky Fibres (Nigeria) Limited, producers of the Nobel brands of carpets and rugs, has announced its plans to raise funds from the Nigerian capital market, through an Initial Public Offer (IPO) that is scheduled to commence before the third quarter of the year 2008.
Speaking in Lagos during a tour of its production facilities, the Chief Operating Officer of the company, Mr. Dinesh Rathi, disclosed that if given the approval by the regulatory authorities, the funds it intends to raise would be used in upgrading its production facilities, investing in new and core areas of its operations.
He said, “We intend to undertake an IPO before the end of the third quarter of this year, where we intend to raise money to finance our various expansion programmes. However, full details of the proposed IPO can not be given now, as we are still in the process of getting the approval of the regulatory authorities of the capital market. We can not categorically state how much we intend to raise until we secure the approval of the authorities.”
He stated that the company hopes to invest N3 billion in the operations of the company, over the next two years, to boost its operations and ensure a sustainable and remarkable growth in all its financial indices in the years ahead.
He noted that it hopes to invest in the acquisition of modern machineries, enrich its human capital resources, expand its factory and other production facilities within the next three years.
Lucky Fibres (Nigeria) Limited is a member of Tolaram Group of Companies, an international group with vastly diversified activities ranging from its core business of manufacturing of consumer products and textiles to the trading of various end products, financial services and real estate business.
It was incorporated as a limited company in 1986 and started its manufacturing activities in 1990 as a producer of raw materials for carpets manufacturers in Nigeria, that is, PolyPropylene Yarn and gradually evolved as a dominant player in the carpet industry of the country.
The Company is presently engaged in manufacturing of bulk continuous filament yarn (PP yarn), tufted carpets and printed carpets. It recently commissioned a state of the art factory for producing printed carpets and rugs, making it the first company in sub-Sahara Africa to engage in the production of printed carpets.
According to Rathi, “ We undertook massive expansion program in 2007/2008 with a cash outlay of USD 10 million. The company constructed a new factory shed for housing two new machines. Lucky Fibres is the first company in Sub Saharan Africa to put up a printed carpet machine. The machine costing USD 4 million was purchased from Zimmer of Austria, who are the monopoly supplier of printed carpet technology in the world.
The machine operates on a simple principle of inkjet printer which means that whatever human mind can conceive, it can achieve.”
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